Algonquin Power & UtilitiesAQN +0.68%69 Operating Margin % is 22.82% as of Mar. 2026, which is 7% above its 10-year median of 21.36. GuruFocus rates AQN with a GF Score™ of 69/100 and a GF Value™ of $5.66 (Fairly Valued). The stock has 6 warning signs investors should review. Among 499 Utilities - Regulated companies, Algonquin Power & Utilities ranks better than 65.53% on this metric.
Algonquin Power & Utilities (NYSE:AQN) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Algonquin Power & Utilities Operating Margin % Related Terms
Algonquin Power & Utilities Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Algonquin Power & Utilities Operating Margin % Chart
For the Utilities - Diversified subindustry, Algonquin Power & Utilities's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Algonquin Power & Utilities Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Algonquin Power & Utilities's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Algonquin Power & Utilities's Operating Margin % falls into.
Algonquin Power & Utilities Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Algonquin Power & Utilities's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Algonquin Power & Utilities (AQN) has a Operating Margin % of 22.82% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Algonquin Power & Utilities and its competitors. This is near median its historical median of 21.36. Over the past decade, Algonquin Power & Utilities' Operating Margin % has ranged from 17.08 to 24.81. According to the industry distribution chart, Algonquin Power & Utilities ranks #172 out of 499 companies in the Utilities - Regulated industry, placing it in the top 34.5%.
Is Algonquin Power & Utilities' Operating Margin % too high?
Algonquin Power & Utilities' current Operating Margin % of 22.82% is near median its 10-year median of 21.36. Over the past 10 years, this metric has ranged from a low of 17.08 to a high of 24.81. The Utilities - Regulated industry median Operating Margin % is 14.97. Algonquin Power & Utilities' value of 22.82% is 52.4% above this industry median. Based on the distribution chart, Algonquin Power & Utilities ranks #172 out of 499 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Algonquin Power & Utilities has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Algonquin Power & Utilities' Operating Margin % compare to SRE and AES?
According to the Utilities - Regulated industry distribution chart, Algonquin Power & Utilities ranks #172 out of 499 companies for Operating Margin %. This puts Algonquin Power & Utilities in the upper half of its industry. The industry median Operating Margin % is 14.97. Algonquin Power & Utilities' value of 22.82% is 52.4% above this benchmark. Historically, Algonquin Power & Utilities' own Operating Margin % has ranged from 17.08 to 24.81 over the past decade. While the company's 10-year median is 21.36 vs. the industry median of 14.97, Algonquin Power & Utilities has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Algonquin Power & Utilities's current Operating Margin % of 22.82% is 52.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Algonquin Power & Utilities and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Algonquin Power & Utilities's current Operating Margin % is 22.82%, which is near median its own 10-year median of 21.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Algonquin Power & Utilities stock overvalued right now?
Based on GuruFocus' analysis, Algonquin Power & Utilities (AQN) is currently considered Fairly Valued. The stock's GF Value™ is $5.66, compared to a current price of $5.95 — trading 5.1% above its estimated fair value. The current Operating Margin % is 22.82%, which is near median its 10-year median of 21.36 and 52.4% above the Utilities - Regulated industry median of 14.97. Algonquin Power & Utilities' overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Algonquin Power & Utilities (AQN), the current Operating Margin % is 22.82% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Algonquin Power & Utilities (AQN) Overvalued in 2026?
Based on GuruFocus' analysis, Algonquin Power & Utilities stock appears to be overvalued.
The current stock price of $5.95 is trading 5.1% above its estimated GF Value™ of $5.66.
GuruFocus considers Algonquin Power & Utilities to be Fairly Valued.
Key valuation signals for AQN:
Operating Margin %: 22.82% (near median its 10-year median of 21.36)
GF Value™: $5.66 vs. price of $5.95 (5.1% above fair value)
Industry Position: 52.4% above the Utilities - Regulated median (#172 of 499)
No single metric tells the full story. See the AQN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Algonquin Power & Utilities Corp is a Canada-based diversified international generation, transmission, and distribution company. The company's operations are organized across two business units: the Regulated Services Group, which owns and operates a portfolio of regulated electric, water distribution, and wastewater collection, and natural gas utility systems and transmission operations in the United States, Canada, Bermuda, and Chile; and the Hydro Group, which consists of hydroelectric-generating facilities located in Canada. It generates the majority of its revenue from the Regulated Services Group segment.
69GF Score
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